Kingfisher plc, the international home improvement retailer and owner of B&Q, has announced the sale of its Brico Dépôt Romania business to Altex Romania for an enterprise value of €70 million (£58 million). The transaction includes all 31 Brico Dépôt stores across 24 cities, distribution operations, and the head office located in Bucharest.
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The sale is expected to be completed during the first half of FY 2025/26, subject to regulatory approval.
Thierry Garnier, Kingfisher CEO, commented: 'We are pleased to have found a capable and experienced local buyer for Brico Dépôt Romania. This decision allows us to concentrate on markets where we are better positioned to achieve attractive returns and create value for shareholders.'
Garnier expressed gratitude to the Brico Dépôt Romania team, acknowledging their commitment and customer focus. He added, 'The outcome of this sale process reflects the progress made in strengthening the business and laying strong foundations for the future.'
Dan Ostahie, CEO of Altex Romania, highlighted the significance of the acquisition: 'Altex Romania, a leader in the electro-IT market, is excited about the opportunity to acquire the Brico Dépôt network. This marks a key milestone and presents new growth prospects in Romania's DIY sector.'
Ostahie emphasised Altex Romania's commitment to delivering high-quality services and a seamless customer experience through an omnichannel approach. He assured customers, employees, and partners of the company's dedication to innovation and operational efficiency. 'Our team is focused on developing this business further, offering opportunities for professional growth and creating an environment of collaboration and excellence.'
In FY 2023/24, Brico Dépôt Romania generated sales of £269 million, accounting for 2.1% of Kingfisher's total group sales. However, the business recorded a retail loss of £(18) million and a free cash outflow of £(17) million.
Kingfisher first entered the Romanian market in 2013 through the acquisition of Bricostore Romania from French retail group Bresson. In 2017, it expanded further with the acquisition of Praktiker Romania. This sale does not affect Kingfisher's Brico Dépôt operations in France, Spain, or Portugal.
The divestment reflects Kingfisher's strategy to optimise its portfolio and focus on regions where it believes greater returns can be achieved.
Source: www.bigfurnituregroup.com